Another Canadian province levies Provincial Sales Tax on non-resident digital service providers
The Canadian province of British Columbia has extended the liability to Provincial Sales Tax (PST) on out-of-state providers of digital services since April 2021. The measure, delayed from last year with the COVID-19 crisis, follows many other provinces, including Quebec and Saskatchewan. The federal state levies 5% GST on foreign sellers since 1 July 2021. Manitoba imposed PST from 1 December 2021.
Check our global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.
The obligation to register as a foreign provider will be triggered by the following criteria:
- Annual sales above C$10,000 per annum in British Columbia
- Sales of B2C software for use on or with an electronic device, including telecommunication services
- Take sales orders from British Columbian consumers to buy software for use on or with an electronic device
British Columbia PST is currently 7%. Check global VAT and GST rates with VAT Calc’s tracker
North America VAT on digital services
|Comments (click for details)||Rate||Implementation Date||Threshold||Comments|
|Canada British Columbia||7%||Apr 2021||C$10,000|
|Canada Manitoba||7%||Dec 2021||C$10,000||B2C; accommodation sharing|
|Canada Quebec||9.98%||Jan 2019||C$30,000|
|Canada Saskatchewan||6%||Jan 2019||Nil for non-residents|
|United States||Up to 10%||2018+||Varies by state|